Prepare the journal entries that Stone Company must make to record the following transactions. Aug 1 Purchased merchandise from Abilene Company for $6,000 under credit terms of 1/10, n30, FOB destination, invoice dated August 1 4 At Abilene's request, Stone paid $100 cash for freight charges on the August 1 purchase, reducing the amount owed to Abilene. 5 Sold merchandise to Lux Corp. for $4.200 under aedt terms of 210 neo. FOB destination, invoce dated August 5. The merchanise had cost S3.000 8 Purchased merchandise from Welch Corporation for $5,300 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Stone's request, Welch paid the $240 shipping charges and added that amount to the bill. 9 Paid $120 cash for shipping charges related to the August 5 sale to Lux Corp. Lux returned merchandise from the August 5 sale that had cost Stre S and been soldfor $700. The me chandise was restored to inventory 2 After negotiations with Welch Corporation concerning problems with the merchandise purchased on August 8 Stone received a credit memorandum from Welch granting a price reduction of $800 15 Received balance due from Lux Corp. for the August 5 sale less the retum on August 10. Paid the amount due to Welch Corporation for the August 8 purchase less the price reduction granted. 9 Sold merchandise to Trax Co. for $3,600 under credit terms of 1/10, n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $2,500. 22 Trax requested a price reduction on the August 19 sale because the merchandise did not meet specifications Stone sent Trax a $600 credit memorandum to resolve the issue. 23 Received Trax's cash payment for the amount due from the August 19 sale. 30 Paid Abilene Company the amount due from the August 1 purchase